Has Aon (AON) Fallen Too Far, Or Is Debt Now Priced In?

Aon has had a rough run over the past year, yet the market is still putting a substantial price on the business and its ability to earn strong returns on the capital it deploys. That gap between a weaker share chart and a still robust valuation raises a clear question about how efficiently Aon is turning its balance sheet and investment in acquisitions into profits for shareholders. The share price has fallen 21.9% over the past year, which puts sharper focus on whether Aon’s returns on...